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Technology Stocks : Xilinx (XLNX) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (2458)	1/31/2000 9:35:00 PM
From: A. Edwards	Read Replies (1) \| Respond to of 3291

XLNX: Reiterate Buy, $65 Twelve-Month Price Target Salomon Smith Barney Monday, January 31, 2000 --SUMMARY:--Xilinx--Semiconductors * We are reiterating our Buy (1H) rating on Xilinx and twelve month price target of $65. Our checks suggest that business has been very robust thus far into the quarter. Should current trends continue, we believe there is upside potential to the 7% sequential sales growth guidance given by the company during its quarterly earnings call in January. Recall that the company had been highlighting some concern regarding customer inventories during the latter part of 1999. Indeed, North American sales grew just 6% sequentially during December, substantially below the double-digit sequential rate the company posted in prior quarters. At this point, we believe the moderate inventory bulge is being worked through quickly due to the strong state of end-market demand. From a positioning standpoint, Xilinx may have taken a conservative stance on forward guidance since it was the first company in its peer group to release earnings. Now with knowledge of its competitors' guidance targets and the month of January in hand, company management may feel comfortable giving more bullish commentary. The company is presenting at several investment conference over the next several weeks, which we believe will provide a forum for the company to alleviate concerns about customer inventories and suggest a chance of better-than-expected sales growth for the quarter. Based on the company's strong product position and the continued strength of demand for semiconductor devices, we believe calendar 2000 should be another record year for Xilinx. We are reiterating our Buy rating on Xilinx and twelve month price target of $65.